Correlation Between Host Hotels and PPHE HOTEL
Can any of the company-specific risk be diversified away by investing in both Host Hotels and PPHE HOTEL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Host Hotels and PPHE HOTEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Host Hotels Resorts and PPHE HOTEL GROUP, you can compare the effects of market volatilities on Host Hotels and PPHE HOTEL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Host Hotels with a short position of PPHE HOTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Host Hotels and PPHE HOTEL.
Diversification Opportunities for Host Hotels and PPHE HOTEL
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Host and PPHE is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Host Hotels Resorts and PPHE HOTEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPHE HOTEL GROUP and Host Hotels is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Host Hotels Resorts are associated (or correlated) with PPHE HOTEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPHE HOTEL GROUP has no effect on the direction of Host Hotels i.e., Host Hotels and PPHE HOTEL go up and down completely randomly.
Pair Corralation between Host Hotels and PPHE HOTEL
Assuming the 90 days horizon Host Hotels Resorts is expected to generate 0.93 times more return on investment than PPHE HOTEL. However, Host Hotels Resorts is 1.08 times less risky than PPHE HOTEL. It trades about 0.04 of its potential returns per unit of risk. PPHE HOTEL GROUP is currently generating about 0.03 per unit of risk. If you would invest 1,398 in Host Hotels Resorts on September 14, 2024 and sell it today you would earn a total of 382.00 from holding Host Hotels Resorts or generate 27.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Host Hotels Resorts vs. PPHE HOTEL GROUP
Performance |
| Timeline |
| Host Hotels Resorts |
| PPHE HOTEL GROUP |
Host Hotels and PPHE HOTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Host Hotels and PPHE HOTEL
The main advantage of trading using opposite Host Hotels and PPHE HOTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Host Hotels position performs unexpectedly, PPHE HOTEL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PPHE HOTEL will offset losses from the drop in PPHE HOTEL's long position.| Host Hotels vs. MTI WIRELESS EDGE | Host Hotels vs. PICKN PAY STORES | Host Hotels vs. BJs Wholesale Club | Host Hotels vs. Fast Retailing Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |